I am an ex-employee of Econohomes, LLC and would like to let people know what really goes on there and how they operate.
NOTE: You may see rebuttals from Kim Jones and Dan Novotny. These people make thousands of dollars per month for referring people to Econohomes and do not actually buy anything themselves. They scour the internet looking for potential buyers and just send the names in for a referral fee. They also come to this website and others advocating for them so they can keep getting paid. Econohomes also hires web image/reputation consultants to try to erase any bad publicity about them on-line. So beware of anyone defending them on this site or any other.
Usurious Lending Practices: Econohomes offers financing to buyers. It is under the guise of "Investor" loans. They knowingly provide these loans to people who intend to occupy them as a primary residence. The people that take these loans are typically not savvy investors and a lot of times uneducated working class people. Econohomes and the greed machine they are happily take advantage of these people so they can sell another run down house to a hapless victim and keep paying ridiculous returns of 40-50% to their investors.
They sell these homes without even having the deed. They call it a "trailing deed" which is not a legal term. They actually invented the term and boast about it. Many of the homes also have liens and judgments on them. They offer you a title search through a national company called Pro Title. These reports are very unreliable and many times do not show things that pull up on other company's reports. A lot of times they may know something that is wrong with the property or the title and withhold the info. A co-worker of mine even received an email from the manager (Jon Shipley) clearly stating not to tell a customer about a $100,000 lien tied to the property. Could that be construed as deceptive?
Ignorant Staff: All of the deceptive practices that go on at Econohomes are handed from the top down (Namely Ed Sumner: Ex-Countrywide Loans scum - the main driver of greed at the company) None of the employees have any real estate experience and have no idea what a deed or title is. They just tell customers what they are told by management in order to make the sale.
Note to Econohomes Investors: You are most likely involved in a Ponzi Scheme by now. Econohomes has to keep buying hundreds of properties to keep up with the returns they promised you. The problem is that they can only sell the good ones and keep piling up an inventory of worthless properties. I can not be sure what they are claiming is the value of these "assets" but if marked to market they have no value because of the liens, condition, back taxes, etc. So, if I were you, I would take my money and run because their system is unsustainable. and someone is going to get stuck holding the bag. They are buying the worst inventory that the banks cannot sell and then sell what they can. Now they are holding the worst of the worst of the worst. Who wants that?
All I can say is BUYER BEWARE - Make sure you know what you are doing - DO NOT BUY ANYTHING WITHOUT A DEED and DO NOT SIGN their contract. You pretty much waive any rights you have and take all responsibility and liability for what could be attached to that property.